Insured commercial banks earned $19.2 billion in the second quarter of 2001, the Federal Deposit Insurance Corporation announced Wednesday.

Through the first six months of the year, banks earned a record $39 billion.

The industry's return on assets (ROA) for the second quarter was 1.21 percent.

It was the fifth most profitable quarter the banking industry has ever reported.

However, fewer than half of all banks - 49.4 percent - reported quarterly earnings higher than a year ago.

Slower growth and narrower net interest margins lowered earnings for many community banks, while a number of larger banks wrote off more commercial and consumer loans than in earlier quarters.

"Life hasn't been quite as easy as it has been, but that doesn't mean it has been difficult," said FDIC Chairman Donald E. Powell. "The industry did well in the second quarter, but not quite as well as in previous quarters."

Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 9,840 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed.

FDIC press releases and other information are available on the Internet via the World Wide Web at www.fdic.gov and may also be obtained through the FDIC's Public Information Center (800-276-6003 or (703) 562-2200).

FDIC press releases and other information, including today's quarterly listing, are available on the Internet at www.fdic.gov or through the FDIC's Public Information Center (800-276-6003 or (703) 562-2200).